Sluggish Oil Prices Last Week Caused Slowing Demand Rate
ChannelIndonesia. World crude oil prices slumped over the past week, triggered by sentiment that weakened demand as economic projections slowed.
Reporting from Reuters, the price of Brent crude oil futures on Friday (14/12) slumped almost 2.3 percent on a weekly basis to US $ 60.28 per barrel. The decline also occurred on a daily basis of US $ 1.17 per barrel or 1.9 percent due to the dragged down performance of the United States (US) capital market.
Meanwhile, the price of West Texas Intermediate (WTI) US crude oil dropped weekly by almost 2.7 percent to US $ 51.2 per barrel. On a daily basis, the decline was US $ 1.38 or 2.62 percent.
"The oil sector remains vulnerable to selling in the capital market, especially when combined with the strengthening of the US dollar as it is now," President Ritterbusch and Associates Jim Ritterbusch said in a note.
On Friday, US capital markets generally slumped as China's retail growth data released the weakest growth rate since 2003 and the lowest increase in industrial output in the past three years. The report added to anxiety due to trade relations between the US-China.
The results of China's oil refineries in November declined compared to October this year. This indicates the easing of oil demand, although in general refinery production increased 2.9 percent compared to last year.
"Oil commodities are under pressure from the poor Chinese economic data that reduces growth in good oil demand in 2019 amid the current oversupply market," Lipstick Oi Associates President Andrew Lipow said in Houston.
On Friday, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to cut production by 1.2 million barrels per day (bpd) or more than 1 percent of global demand. The agreement was triggered by concerns about a flood of supplies.
On Thursday, the International Energy Agency (IEA) estimated the oil market deficit would occur in the second quarter of 2019. This was not separated from the agreements made by OPEC and its allies.
As part of the de facto OPEC leader agreement Saudi Arabia plans to cut production to 10.2 million bpd in January 2019.
The IEA estimates next year's oil demand growth of 1.4 million bpd, unchanged from last month's projection. Meanwhile, projected demand for this year is estimated at 1.3 million bpd.
In the US, the energy service company Baker Hughes reported that the number of oil rigs dropped by four to 14 December 2018. Note that the number of rigs is a future indicator of production.
The US Commodity Futures Trading Commission (CFTC) said, until the week ending December 11 2018, financial managers cut bets on the position of oil prices going up (bullish) to the lowest level in the last two years.
On Friday, Barclays estimated oil prices would recover in the first half of 2019 as supplies slipped, Saudi Arabia's production cuts and the end of the period of exclusion of Iran sanctions were excluded.
Reporting from Reuters, the price of Brent crude oil futures on Friday (14/12) slumped almost 2.3 percent on a weekly basis to US $ 60.28 per barrel. The decline also occurred on a daily basis of US $ 1.17 per barrel or 1.9 percent due to the dragged down performance of the United States (US) capital market.
Meanwhile, the price of West Texas Intermediate (WTI) US crude oil dropped weekly by almost 2.7 percent to US $ 51.2 per barrel. On a daily basis, the decline was US $ 1.38 or 2.62 percent.
"The oil sector remains vulnerable to selling in the capital market, especially when combined with the strengthening of the US dollar as it is now," President Ritterbusch and Associates Jim Ritterbusch said in a note.
On Friday, US capital markets generally slumped as China's retail growth data released the weakest growth rate since 2003 and the lowest increase in industrial output in the past three years. The report added to anxiety due to trade relations between the US-China.
The results of China's oil refineries in November declined compared to October this year. This indicates the easing of oil demand, although in general refinery production increased 2.9 percent compared to last year.
"Oil commodities are under pressure from the poor Chinese economic data that reduces growth in good oil demand in 2019 amid the current oversupply market," Lipstick Oi Associates President Andrew Lipow said in Houston.
On Friday, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to cut production by 1.2 million barrels per day (bpd) or more than 1 percent of global demand. The agreement was triggered by concerns about a flood of supplies.
On Thursday, the International Energy Agency (IEA) estimated the oil market deficit would occur in the second quarter of 2019. This was not separated from the agreements made by OPEC and its allies.
As part of the de facto OPEC leader agreement Saudi Arabia plans to cut production to 10.2 million bpd in January 2019.
The IEA estimates next year's oil demand growth of 1.4 million bpd, unchanged from last month's projection. Meanwhile, projected demand for this year is estimated at 1.3 million bpd.
In the US, the energy service company Baker Hughes reported that the number of oil rigs dropped by four to 14 December 2018. Note that the number of rigs is a future indicator of production.
The US Commodity Futures Trading Commission (CFTC) said, until the week ending December 11 2018, financial managers cut bets on the position of oil prices going up (bullish) to the lowest level in the last two years.
On Friday, Barclays estimated oil prices would recover in the first half of 2019 as supplies slipped, Saudi Arabia's production cuts and the end of the period of exclusion of Iran sanctions were excluded.
Komentar
Posting Komentar